Eugene Considers Climate Fund Initiative Targeting Major Corporations
As Eugene, Oregon, prepares for an upcoming vote that could establish a new climate fund, the initiative aims to levy fees on large corporations with significant profits. This move echoes a similar strategy already implemented in Portland, sparking discussions on its potential impact and benefits.
Amy Winton, owner of the Mexican taquería Pandita in Eugene, finds herself reliant on fossil gas due to existing gas-fueled equipment. She expressed a desire to transition to electric alternatives but cited financial constraints as a barrier. “We just don’t have the funds” to make the switch, Winton stated. “If we had the financial backing for it, we could do it.”
The initiative comes in the wake of a controversial federal rollback of climate incentives, which has prompted Eugene voters to consider local measures for clean energy funding. The proposal would impose a 2% fee on companies like Amazon, Chase, Home Depot, Walmart, and Wells Fargo, provided they earn $1 billion or more in gross profits nationally and at least $500,000 within Eugene. Notably, profits from groceries, medicines, residential garbage, recycling, and healthcare services would be exempt.
Should the measure pass, it could generate between $15 million and $37 million annually. These funds would be directed toward renewable energy programs, job training in clean energy, and carbon-sequestering green infrastructure projects, with a focus on aiding low-income and marginalized communities. Jennifer Davis, executive director at Beyond Toxics, emphasized the importance of corporate responsibility, saying, “We’re really excited about… making big corporate retailers that are making over $1 billion a year pay their fair share.”
Portland’s experience serves as a potential model, having surpassed expectations by raising nearly $200 million annually through a similar fee, largely due to high online sales. This funding has supported over 400 community grants, generated significant renewable energy, reduced greenhouse gas emissions, and trained numerous individuals for clean energy roles.
While a few cities have adopted climate funds, Eugene’s approach mirrors Seattle’s, targeting larger businesses. However, the Building Decarbonization Coalition notes that Portland remains an outlier in taxing billion-dollar corporations. Eugene’s proposal boasts broad support, including over 100 organizations and officials such as the Oregon Just Transition Alliance and U.S. Senator Jeff Merkley.
Opposition comes from business groups like the Eugene Area Chamber of Commerce, citing concerns over increased retail prices. However, Danny Noonan of the Breach Collective argues that prices remain consistent across regions, as evidenced by uniform Amazon pricing despite Portland’s fee.
The initiative also addresses concerns about corporate tax contributions, highlighting a significant decline since the 1970s. If approved, the climate fund would begin collecting fees by 2029, potentially aiding local businesses like Winton’s restaurant in transitioning to electric solutions. “The pulse from folks coming into our business and talking about [the fund], is they’re all for it,” Winton remarked. “It’s a no-brainer.”
Original Story at nextcity.org